- Ethereum exchange supply declines to lowest since 2016.
- Institutional buying drives exchange outflows.
- Staking and DeFi absorb large ETH volumes off exchanges.
Ethereum’s exchange supply reached a historic low of 14.8 million ETH in September 2025, largely due to institutional accumulation and increased staking, according to Glassnode data.
This reduction signals potential market volatility and liquidity shifts as ETH moves into DeFi and staking platforms, impacting short-term trading dynamics.
Ethereum’s exchange supply has reached its lowest level since 2016, with only 14.8 million ETH remaining. Institutional involvement has significantly contributed to this reduction, as entities move holdings into staking and DeFi platforms. As noted by Glassnode Analytics, “The exchange supply has dropped to a nine-year low of 14.8 million ETH, showing a negative exchange position change of -2.18 million ETH, a rarity in the last decade.”
Institutional players and ETF sponsors have acquired 5.26 million ETH, redirecting reserves into staking. This trend reflects their growing interest in non-custodial and DeFi solutions amid increasing liquidation risk hovering over the market.
The decline in ETH on exchanges affects liquidity and trading dynamics. The institutional shift into staking reduces circulating supply, potentially stabilizing ETH volatility in the short term. This development suggests a broader market response favoring decentralized finance.
Financial implications include shifts in staking yields as more ETH enters contracts, affecting governance and yield tokens. ETF holdings reach 6.75 million ETH, symbolizing a significant supply absorption by regulated financial products.
Communities observe the ongoing staking trend as institutional entities rotate holdings from centralized exchanges. This migration not only affects immediate trading but also shifts long-term market dynamics. StrategicEthReserve reported that “Since April 2025, 68 major organizations have accumulated over 5.26 million ETH, contributing to a significant decline in exchange supply.”
Historical precedents indicate sustained declines drive ETH towards DeFi participation. Past trends highlight the potential bullish sentiment but also reveal bottlenecks in immediate price surges, suggesting market stabilization with reduced speculative volatility.
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